Financial Services Compensation Scheme (FSCS)


The Financial Services Compensation Scheme (FSCS) is an independent body in the UK, set up under the Financial Services and Markets Act 2000, to provide a free service to consumers that have allegedly been wronged by a financial firm or institution.

In contrast to the Financial Ombudsman Service, the FSCS handles complaints against FSA-authorised firms in the event that the firm has become insolvent and unable to pay compensation.

The FSCS primarily supports private customers and small firms — special terms apply for larger companies. After the FSCS finds a financial services firm unable, or likely to be unable, to pay a claim against it, it is able to pay compensation to consumers instead, as the UK’s statutory fund of last resort.

The scheme covers deposits, insurance policies, insurance brokering, investments, mortgages and mortgage arrangements.

Further reading

Financial Services Compensation Scheme website

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